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(3 Marks) 4. Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will
(3 Marks) 4. Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant wage WHS throughout your career. If you study, you pay tuition for four years and then earn a constant wage WUNI. a. Show the condition under which you will choose to study. (1 Marks) b. Explain how changes in tuition, interest rate, and wage differential (WUNI - WHS) would affect your decision. (6 Marks)
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